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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (150540)	9/25/2008 9:27:57 PM
From: Sr K	Read Replies (2) \| Respond to of 306849

WM could be why Paulson said we need the deal this week. Probably OTS gave Paulson until Friday. When it was clear that it would go longer, OTS and FDIC acted.

To: MulhollandDrive who wrote (150540)	9/26/2008 1:55:56 AM
From: FJV	Read Replies (2) \| Respond to of 306849

The cynic in me believes that it is within the realm of possibility that JPM colluded with Paulson's boys to steal WM prior to any bailout. WM recently rejected a $4/share bid by JPM. Today, JPM picked up $31B in assets for the fire sale price of $1.9B - way less than $4/share. It would not shock me to see a bailout deal announced between now and Monday. Receivership is capitalism at its finest - with the government (ie. you and me) assuming the WM toxicity, while simultaneously wiping out the shareholders and creating a windfall for JPM immediately accretive to the tune of .50 a share. This is the epitome of a sweetheart deal. It is clear that JPM, along with Goldman and Morgan Stanley, is one of the annointed few. It is also, however, the largest and most highly leveraged player in the credit derivatives market - obviously at high risk right now. Lehman was a major counterparty to much of this risk. Lehman has taken a dirt nap. This saga isn't over by a long shot.